BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Sales Discounts-(Sales) + Sales Returns & Allowances)
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Sales Returns & Allowances-Sales Discounts + Sales
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Sales-(Sales Discounts + Sales Returns & Allowances)
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Sales Returns & Allowances-(Sales Discounts + Sales)
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Detailed explanation-1: -Net sales is the sum of a company’s gross sales minus its returns, allowances, and discounts.
Detailed explanation-2: -Net sales = Gross sales – Returns – Allowances – Discounts Gross sales is calculated by multiplying the total units sold by the sale per unit price. Returns or sales returns refers to the goods that have been returned by the customers in exchange for a refund for the goods.
Detailed explanation-3: -The formula to calculate gross sales is Total Units Sold x Original Sale Price = Gross Sales. A company’s gross sales are the total sales of all its products and/or services over a period of time.
Detailed explanation-4: -The equation is: (Current Period Net Sales-Prior Period Net Sales) / Prior Period Net Sales * 100. Net sales is equal to gross, or total, sales revenue minus discounts, customer returns and allowances for damaged and defective merchandise.